‘Grexit would deliver no benefit but a lot of pain’ – ECB’s Stournaras

FXStreet (Mumbai) - An exit from the euro zone is not an option and it wouldn’t help Greece's economy in the long run, European Central Bank Governing Council member and Greece's central bank Governor Yannis Stournaras said at a conference in London on Wednesday, while urging Athens to proceed quickly with reforms to satisfy its creditors.

Key Quotes:

“Grexit would deliver no benefit but a lot of pain,”

“The new Greek government has a unique opportunity to implement bold structural reforms, which would be backed by a large majority of political forces in the country.”

“There was some outflow of deposits due to uncertainty,”

“(ECB) Emergency Liquidity Assistance has been provided so that there’s no problem for the banking system.”

“Extending maturities and reducing interest rates on the outstanding debt may improve the growth outlook of the Greek economy,”

“Alternative options could also be considered to improve the sustainability of Greece’s public debt.

However, they might be more contentious, as they likely involve some costs for euro-area partners.”